E-Sports and Its Strategic Direction Dissertation

Executive Summary

E-Sport has been in existence for about half-century but it is not widely understood compared with other sports. Many people and some governments still consider it a form of gambling instead of sporting activity. As such, it has not experienced massive acceptance and popularity as stakeholders would prefer. In this paper, the focus of the researcher was to determine the strategic direction for e-sports in terms of planning major regional and global tournaments. It is evident from the investigation that the majority of the participants in e-sports are aged from 18 to 34. The study also shows that 85% of these viewers are male while 15% of them are female. The growth of this sport has been impeded by the lack of proper understanding within the global community. As such, it has not only failed to get the support of some governments but also corporate sponsors. The report recommends that stakeholders should organize massive awareness campaigns on mass media platforms. It is also necessary to have national, regional, and international councils to coordinate and control activities in esports. These steps will help in developing proper plans for major regional and global esports tournaments.

Introduction

Background of the Study

E-sports has been gaining rapid popularity over the past decade because of the technological advancements in the field of information and communication. Pedraza-Ramirez (2020) defines e-sports as a form of competition that takes place virtually through video games. The players do not need to interact physically because of the virtual nature of the competition. The first recorded e-sports competition took place on October 19, 1972, when some students at Stanford University organized the first Intergalactic Space-war Olympics at the school’s artificial intelligence laboratory (Salo, 2017). The winner of that tournament received recognition from fellow students and a year’s subscription to the prestigious Rolling Stone magazine. At that time, most of the audience to the tournament were fellow students and a few sponsors who were interested in promoting virtual gaming.

The event was a success, but it was not given a lot of emphasis at that time. Many sports enthusiasts still preferred the physical game where players had to meet in a physical arena. As such, the growth of the game was relatively slow in some parts of the world, especially in the United States where it started. However, the game has received recognition from various governments in Asia and parts of Europe. Professional players are emerging as this firm of sport becomes increasingly popular in some parts of the world. Chaloner (2020) explains that some of the most popular genres of e-sports include multiple player online battle arena, first-person shooter, battle royal, and card. Franchising has become part of e-sports in modern society.

The growth of online streaming platforms has had a major impact on the growth of e-sports. One of the major impediments to the growth of the sport was limited viewership. Some of the major television outlets did not consider it profitable to air virtual games live as they happened. It was more profitable for them to air traditional sports, which were and still are more popular (Butolia, Phang, and Fox, 2020). It was a major challenge as stakeholders could not reach out to a wider audience. However, this has changed with the emergence of online streaming media platforms such as YouTube and Twitch. The global audience and professional players started to increase significantly by 2010. The prize money from this sport started to increase as it spread across Europe and Asia. Aghey (2020) reports that in 2019, a Danish player earned $ 3 million after winning a tournament. Industry experts have projected rapid growth of the industry.

The events following the outbreak of COVID-19 have brought back massive attention to e-sports. The global community was faced with a lockdown as the pandemic continued to rake havoc. Major sporting tournaments, including the popular Olympics and various leagues, were suspended because of the fear of the spread of the virus. Many people around the world who relied on these tournaments for entertainment no longer had the opportunity to watch them. On the other hand, e-sports were not affected by the pandemic. It was during this period that the game experienced a massive surge in viewership. It is estimated that the global viewers of e-sports in 2020 were about 500 million people (Rissole and Furphy, 2021). Many people had no option but to turn to rely on e-sports for entertainment. The industry experts estimate that by 2025, the global audience may increase to more than 1 billion people. In this paper, the focus is to analyze the strategic direction of e-sports, especially in relation to planning and organizing e-sports tournaments.

Problem Statement

Lack of strategic direction in e-sports in terms of planning and organizing major regional and global tournaments is a major challenge towards its growth. E-sports has a huge potential for growth as online streaming services become more accessible and affordable around the world. However, its growth is still relatively low compared with other physical sports. According to Finch et al. (2020), the majority of adults between the ages of 18 and 34 who are regular viewers of e-sports are men. The statistics show that 85% of these viewers are male while 15% of them are female. It is a clear indication that this sport has failed to become appealing to women who can help in facilitating its rapid growth. The game has also remained popular only among the younger members of the global community, especially those who are below 34 years. The older adults above 35 years do not regard it as a major sporting event that is worth their time and resources. This is a major concern for the growth of e-sports because it reduces the chances of these games receiving major sponsors who can facilitate their development.

This form of sport has also faced major challenges in some parts of the world. Although it has remained popular in China and South Korea, the same cannot be said about the sport in other countries. For instance, broad anti-gambling policies and regulations in Japan that prohibit paid professional gaming tournaments have limited the ability of Japanese players to get involved in this tournament (Fetchko, Roy, and Clow, 2019). The stakeholders in e-sports have failed to convince this government that this form of sport is different from gambling. The only difference between e-sports and traditional games is that the former is played virtually while the latter involves physical interaction. If the Japanese government can classify e-sports as part of the paid professional gambling, then it is an indication that enough sensitization has not been done to popularize the game.

One of the main problems that e-sports face is lack of sensitization, especially among the elderly and people in the developing economies. The lack of sensitization of the global community about the game is a sign of a lack of a strategic direction in e-sports. The game is hardly known in some parts of Africa, South America, Asia, and even in North America. The majority of adults above 50 years cannot distinguish the difference between e-sports and other online games meant for entertainment among children. They are not aware that two individuals can engage in an active professional competition through an online platform. They are also not aware that such games can be watched virtually through online streaming media such as YouTube and Twitch (Pettman, 2020). It is a clear demonstration that not enough has been done to create awareness about the sport and to ensure that misconceptions such as its association with gambling are eliminated.

The limited number of major sponsors is another indication that e-sports still lack strategic direction. In the United States, companies such as PepsiCo, the Coca-Cola Company, and Walmart often struggle to become the official sponsors of major sporting events such as American football, baseball, and basketball (Wells and Harrolle, 2019). In Europe, large corporations such as Adidas, Barclays Bank, and the Royal Dutch Shell are often willing and keen on sponsoring major football tournaments. In major global sporting events such as World Cups, the Diamond League, and Olympics, global corporations such as Samsung, General Electric, and General Motors among others are often willing to spend hundreds of millions of dollars in sponsorship. They are aware that such events offer them unique opportunities to promote their brand and products. It is a unique marketing opportunity that most of these companies are often not willing to ignore. E-sport is yet to generate such levels of attractiveness among major sponsors. It means that its players cannot earn attractive salaries as those involved in traditional games do. A lot has to be done to address these challenges. As such, it is necessary to define its strategic direction.

Rationale of the Study

Technology is redefining the global community, especially how people interact and engage in various activities. In the past, physical interaction was highly valued as it was the only way through which two or more people could engage in social settings. However, that is changing rapidly because of advancements in the field of communication. Many people are finding themselves having to spend a lot of their time in the office as they pursue their careers. Others even have to take two or three jobs to make ends meet. It explains why e-marketplace has gained massive popularity. Amazon.com has become one of the most convenient platforms for people to sell and buy products that they need. In the process, it has made Jeff Bezos, its founder, the richest person in the world. Online music has also gained massive popularity in the global community. YouTube has become a highly popular entertainment platform in the world and people are earning millions of dollars by making their products available to their audience through it. Online dating, online news channels, and e-conferencing have also gained massive popularity over the last ten years (Rogers, 2019). These examples demonstrate that the world is moving from the physical to the digital platform.

The stakeholders in e-sports need to understand the huge potential that they have to achieve growth. Parry (2018) explains that one of the biggest challenges that the sport faces is that people are yet to view it as a real sporting activity. The majority consider it as entertainment between two or more individuals that is not worth spending one’s time watching. They believe that the only individuals who can truly enjoy it are those who are directly involved in playing it. This perception has been blamed for the few audiences watching the sport. They do not see how they can be entertained through such games. Others view it as entertainment that is meant for children and young adults who are jobless and have some time to spare (Fink and Mikesky, 2021). It explains why the game has remained relatively unpopular among people aged over 35 years. Having a strategic plan will require stakeholders to find a way of changing the perception. They need to understand the nature of the game and its difference from online gambling activities.

The International Olympic Committee has been petitioned to include e-sports as part of the tournaments. It is important to note that the planned 2021 Tokyo Olympics will include new sports such as surfing, sport climbing, and skateboarding (Porter and Wilson, 2020). For a long time, these activities were viewed as sports meant for personal entertainment as opposed to being meant for viewers. However, they have finally been included in the Olympics and will form part of competitive games. It is a clear demonstration that e-sports has the potential to be included in the Olympic Games. As Troupe (2020) observes, Olympic Games may offer this sporting activity a lifeline into being considered a major global sporting activity. It may help in changing the perception of older members of society who consider it as one of the gambling activities. However, this opportunity can only be realized when these stakeholders define the strategic direction of e-sports. This study will enable them to understand what they need to do to ensure that they gain global acceptance and popularity.

Aim and Objectives

When conducting research, it is often necessary to define the aim and objective of the study. Doing so makes it possible for the researcher to understand what needs to be achieved by the end of the study. It defines the nature of the information that should be collected from various sources. In this academic project, the aim of the researcher is to define the strategic direction of e-sports. The following are the specific objectives that the researcher seeks to achieve by the end of the project:

• To assess the current state of e-sports in global society in terms of its popularity, planning, and organization of tournaments;
• To identify major impediments to the growth of e-sports in global society and recommend ways in which these challenges can be effectively addressed;
• To assess the effectiveness of strategies that stakeholders in this sector use to address the challenges and foster growth;

Research Questions

When research objectives have been developed, a researcher can then develop research questions that will facilitate the actual collection of data from various sources. Stokes (2014) advises that when formulating research questions, it is necessary to ensure that they directly respond to the research aim and objectives of the study. They should help in ensuring that the intended goal in the study is achieved. The following is the primary research question in this study:

• What is the strategic direction of e-sports in terms of planning and organizing major regional and global tournaments?

The question above was supported by the following sub-questions to facilitate effective collection of both primary and secondary data:

1. What is the current state of e-sports in global society in terms of its popularity?
2. What are the major impediments to the growth of e-sports in global society?
3. How effective are the strategies that stakeholders in this sector use to address the challenges and foster growth?
4. Which ways can these challenges be effectively addressed to foster the development of e-sports?

Dissertation Structure

The dissertation has five chapters. The first chapter introduces the topic and provides detailed background information. It provides a statement of the problem and the rationale for the study. Also addressed in this chapter are the aim, objectives, and the research question. The second chapter involves a review of the literature. The researcher provides findings that other scholars made when conducting related studies, the history of this sport has been discussed and relevant theories also addressed. The third chapter provides a detailed discussion of the methodology used to collect and process data. Research philosophy, approach, design and data collection methods are addressed. The chapter also discusses the analysis method, challenges encountered, and ethical considerations that had to be observed. Chapter 4 of the paper addresses findings made from the analysis of primary data. The last chapter provides a conclusion based on the analysis of both primary and secondary data. It also provides recommendations on how stakeholders can facilitate the growth of e-sports globally.

Literature Review

The previous chapter provided a detailed background of the study and the objectives that should be realized in the end. This chapter provides a review of the literature. It was important to review what other scholars have found out in this field of study. As Scholz (2019) observes, reviewing the literature makes it possible to identify existing gaps and conflicts in the current body of knowledge. The chapter discusses the history of e-sports, its popularity, and challenges faced by professional players and other stakeholders based on what other scholars have written. This chapter also discusses the relevant theory that can help stakeholders in this sector to promote the sport globally.

History of E-Sports

E-sport has gone through a major transformation over the past five decades. According to Mauleón (2020), the earliest-recorded competitive video game took place at Stanford University on October 19, 1972. It was known as Spacewar and it took place at the institution’s artificial intelligence laboratory. Bruce Baumgart won the individual tournament while Robert Maas and Tovar won the team category (Boluk and LeMieux, 2017). In 1978, the Japanese Taito introduced Space Invaders which gained popularity in Europe, North America, and parts of Asia. The first Space Invaders Championship was held in 1980 (Mauleon, 2020). In 1983, Twin Galaxies created the United States National Video Game Team that became involved in various competitions such as Video Game Masters Tournament (Carrabine, 2019). There were attempts to air some of these e-sports events.

The Starcade, an American television show was the first to air such a show in 1982, and it lasted till 1984 with a total of 133 episodes. Other television shows that aired e-sports events included That’s Incredible, Tron, and BBC’s First Class. However, these shows were stopped at different times because they were not as popular as traditional sporting events. However, the industry continues to grow. In the 1990s, large e-sports tournaments such as Nintendo World Champions and Universal Studios Hollywood were introduced in California (Rappaport, 2020). Championship Gaming Series were tournament was organized in 2007 and 2008 and was broadcasted on CBS and ESPN while the World Series of Videos Games tournament, which was held in 2007 and aired through the G4 channel (Macey, Abarbanel, and Hamari, 2020). The tournaments have continued to become more common in North America, Europe, and parts of Asia. It is important to note that although these events were occasionally aired through major television channels, they have not been given priority when there are major traditional sporting events.

Popularity of E-Sports

E-sports has continued to gain popularity around the world. According to Cornwell (2020), China became one of the first nations in 2003 to recognize e-sports as being a real sport (Hallmann and Giel, 2018). The Chinese government, through the Ministry of Human Resources and Social Security, gave direct support to players and organizers of these tournaments. It introduced Occupational Skill Testing Authority to identify individuals with the capacity to actively engage in tournaments that had become popular. The United States and Canada also embraced e-sports to varying degrees. For instance, in 2013 Danny Shiphtur Le, a Canadian League of Legends player, was the first pro-gamer that acquired an American P-1A visa, which meant that he was an internationally recognized athlete (Qian et al., 2020). In 2019, over 100,000 people in China had registered as professional gamers (Jang and Byon, 2020). The number has continued to grow.

In 2014, Turkey, through the Ministry of Youths and Sports, started issuing professional gamers with certificates, recognizing them as an athlete (Bernsen, Sørensen, and McTurk, 2020). The Philippines did the same in 2017. Many European nations such as France, Germany, and the United Kingdom among others have also embraced this sport. In these countries, e-sports have been receiving airtime in major television stations. However, McAtee (2020) notes that the challenge remains the same, that traditional sports are still given priority. The International Olympic Committee is considering the inclusion of some of the e-sports in its international tournaments despite the concerns that some stakeholders have raised such as the limited physical activities and addiction.

Challenges Faced by Professional Players and Other Stakeholders

E-sport has faced numerous challenges as stakeholders struggle to ensure that it becomes a mainstream sporting event. One of the biggest challenges that it faces is a misunderstanding among the masses. Some people associate it with online gambling, which is an unpopular practice in various countries around the world. Others think it is a simulated game meant for individual entertainment as opposed to being a competitive sport (Fink and Mikesky, 2021). The misinformation has made this sport less popular in some parts of the world although it has been in existence for over 50 years.

Cybercrime is posing a uniquely potent threat to e-sports’ growth. The fact that the game itself and viewing are done virtually, cybercriminals can gain access to these platforms and manipulate the outcome or even sabotage the entire process (Reitman et al., 2020). Compared with traditional sports that have faced terror threats for decades, e-sports faces a greater threat from illegal online activities. There is also the heavy reliance on internet connectivity for tournaments to take place and for the viewers to follow events of the sport. It is also of concern that e-sporting tournaments do not receive as much attention from the mass media as other traditional sporting events.

Addiction has been identified as a major issue that makes e-sports less popular among older adults. Collis (2020) argues that one can become so addicted to these e-games that they cannot have enough time to engage in more important academic or employment activities. As such, people who regularly play these games are viewed as being lazy and irresponsible. The constant ridicule that these players are constantly subjected to has discouraged many from pursuing careers in e-sports. E-sports is less likely to get corporate sponsors than traditional sporting activities because of such perception.

Theoretical Perspective and Strategic Direction

The analysis of the literature has identified various challenges that have impeded the development of e-sports. One of the main concerns is limited knowledge about the sport. People have failed to understand the difference that exists between e-sports and online gambling activities. It means that a lot still needs to be done to ensure that the global community has a clear understanding of what it entails, why it is not significantly different from traditional sports, and how it can be of benefit to society, especially during such times when COVID-19 has created a new normal in terms of human interactions. One of the important factors that should be considered when defining the strategic direction of e-sports is its promotion.

The theory of change can help in defining specific activities that can be conducted to achieve the strategic direction explained in the previous chapter. Organizers and players need to treat the global community as consumers who need to embrace the new product (e-sporting activities) and regularly consume it as they have been consuming other popular sports such as football and basketball. To achieve success in such a promotional effort, it is critical to understand the process that that will enable the stakeholders to achieve the goal of having a standard plan for major e-sports tournaments. Theory of change, shown in figure 2.1 below, can help in defining the necessary steps.

This theory identifies 6 steps that should be followed to achieve the needed change within an organization. The first step is to identify the purpose of the change process. In this case, the purpose is to develop a clear blueprint that can be followed to successfully organize local, regional, and global e-sports tournaments. The second step is to develop a vision and define the desired change (Collis, 2020). The vision is to have a conventional plan for e-sports tournaments at the levels stated above. It is necessary to have a change, from the current practice to a more coordinated approach of organizing e-sports globally (Bernsen, Sørensen, and McTurk, 2020). The role of different stakeholders also need to be clearly stipulated.

Identification of domains of change is the third step when using this model of change. The stakeholders must understand what needs to be changed in e-sports to achieve the desired goal (Porter and Wilson, 2020). The needed change focuses on how e-sports are organized and conducted in different parts of the world. There is a need to form a standard practice that can be emulated all over the world. The next step is the identification of strategic priorities. Stakeholders need to understand the specific factors that have to be considered to ensure that e-sports can be organized at local, regional, and international levels, just like other popular sports such as soccer.

The fifth step is to develop pathways of change. As Fink and Mikesky (2021) suggest, responsible authorities must define the strategic path that will make it possible to achieve the intended change. The team may need to engage stakeholders in e-sports at a global level so that a standard blueprint can be develop to coordinate e-sports at different levels. An effort should be made to ensure that there is an agreement about the developed plan. The last step in this theory is to review and adopt the proposed changes. When the relevant stakeholders are convinced about the new blueprint, it can be tested to affirm its effectiveness (Finch et al., 2020). Minor adjustments can be made based on the outcome of the review.

Research Methodology

The previous chapter has provided a detailed review of the literature on this topic. In this chapter, the goal is to provide an explanation about the method that was used to collect and process primary data. The researcher had to rely on primary data to address research gaps identified when reviewing the literature. The chapter discusses the research philosophy, research approach and the design. Data collection method, the instrument of data collection, and the analysis method were also discussed. The chapter also explains challenges encountered and the ethical considerations observed in the study.

Research Philosophy

When planning to conduct research, one of the factors that one has to define as early as possible is the research philosophy. The philosophy defines all the assumptions and principles that will be embraced when developing new knowledge. A researcher can use positivism, realism, pragmatism or interpretivism. Positivism is a common philosophy when conducting quantitative studies while interpretivism is often used in qualitative research. This study used mixed-method research, which means that the researcher could not limit themselves to any of these two philosophies. Realism is a common philosophy when conducting scientific research, which meant that it was also inappropriate for this study.

Pragmatism was considered the most desirable philosophy in this study. As Leavy (2017, p. 71) observes, pragmatism holds that “there are many different ways of interpreting the world and undertaking research, that no single point of view can ever give the entire picture and that there may be multiple realities.” As such, a researcher is at liberty to use either qualitative or quantitative methods of conducting research. The major principle of this philosophy is that the concept developed should support action. It should be practical even though it could be interpreted in different ways (Kara, 2020). This philosophy was chosen because it allowed the researcher to use mixed-method research. It was possible to analyze the strategic direction of e-sports from various perspectives.

Research Approach

When an appropriate philosophy has been defined, the next step is to identify an appropriate research approach for the study. Morse (2016) explains that the selected research approach should be in line with the principles and assumptions of the selected philosophy. One can use deductive or inductive research approach. In this study, the researcher considered inductive reasoning as the most appropriate research approach (Williamson and Johanson, 2018). As shown in figure 3.1 below, inductive research starts with gathering data, then the researcher is expected to look for patterns (analysis) before developing a new concept/theory based on the findings made. Developing a strategic direction for e-sports requires an understanding of the current state of the game and major impediments to its growth before determining the way forward.

Research Design

When research philosophy and approach have been specified, a researcher will then narrow down the focus to the design that is appropriate for the study. The research design selected should enable the researcher to meet the aim and objectives of the study. Mixed method research design was considered the most desirable one. Using both qualitative and quantitative methods of analyzing data was critical. Quantitative analysis of data made it possible to assess the magnitude of challenges impeding the growth of this sport. On the other hand, qualitative analysis enabled the researcher to explain the relationship between different variables and to determine the strategic direction of e-sports.

Data Collection

Data used in this study was collected from two main sources. The first source of data was secondary information collected from books, journal articles, and reliable online sources. Chapter 2 of this report was dedicated to the review of information obtained from secondary sources. Primary data sources came from a sample of 8 individuals who participated in this study. These individuals were included in this study because they have relevant information about e-sports and could provide expert opinion about its strategic direction. Chapter 4 of this report is dedicated to the presentation and analysis of data obtained from primary sources. This chapter explains how data was obtained from these participants and processed to help respond to each of the research questions.

Sampling and Sample Size

Sampling is an important activity when collecting data from a large population. Pelto (2017) states that it enables a researcher to have a small manageable group of people who can be a perfect representation of the entire population. In this study, sampling only focused on defining inclusion criteria because those with the knowledge and experience about e-sports were limited. The coronavirus containment measures meant that the researcher did not have a large population from which to choose participants. One of the important criteria that a participant had to meet is that should have adequate knowledge about the sport. They should preferably be regular players, or viewers of these games who understand the potential for its growth. Judgmental sampling was considered the best way of selecting these participants. This sampling method was chosen because of the need to ensure that only those who met the inclusion criteria are included in the study.

The fact that those who met the inclusion criteria were limited meant that it was not necessary to use random sampling. Those who were considered knowledgeable enough for the study were included. A sample size of 8 individuals was used. The researcher wanted a larger sample size but the coronavirus containment measures limited the ability to find individuals qualified for the study. The sample size was enough for data saturation because secondary data was used to support the information.

Questionnaire Design

It was necessary to have a standard instrument to facilitate the process of collecting primary data from the sampled individuals. The fact that it was not possible to physically interact with these participants meant that the researcher had to develop a tool that would effectively facilitate data collection process (Hennink, Hutter, and Bailey, 2020). It had to be simple and straightforward to ensure that respondents could understand with ease what was expected of them. The questionnaire that was developed had three sections. The first section of this instrument focused on demographical information. Factors such as age and gender were captured because secondary sources had indicated that viewership was more common among men and the younger population.

Capturing these demographical factors was necessary for confirming such arguments. The second part focused on the academic background and experience that the participants had in this game. It was necessary to ascertain whether one’s academic achievements influenced their view of the sport. The experience that these participants had in the sport defined the authority that they had to provide an informed opinion about it. The last section of the report focused on specific questions about the strategic direction of e-sports. The section used both closed and open-ended questions to collect comprehensive information about the issue under investigation. The document is attached at the appendix of this report.

Data Analysis

When data has been collected from a sample of respondents, the next step is to conduct an analysis. In this case, the aim was to define the strategic direction of e-sports. It was necessary to identify the most suitable method of processing data. The researcher considered mixed method research as the best way of conducting a comprehensive analysis of the issue under investigation. Using quantitative methods, it was possible to explain the level of popularity of this sport among the targeted population. It was possible to investigate the potential for growth. The researcher used structured (closed-ended) questions to facilitate quantitative analysis.

It was also necessary to conduct a qualitative analysis in this project. Andrew, Pedersen, and McEvoy (2019) explain that sometimes it is necessary to go beyond statistics and provide a detailed explanation of a phenomenon. In this case, the qualitative analysis made it possible to provide a detailed explanation of the sport, why it has not gained rapid popularity in some parts of the world, and its current state. The analysis made it possible for the respondents to provide a detailed explanation about the future of e-sports, identifying specific challenges and stating what can be done to address them. Using both qualitative and quantitative methods of analysis was considered the most effective way of achieving the aim and objectives of the study.

Validity and Reliability

It was important to ensure that information presented in this document is trustworthy, especially because the document may be used by policy-makers in e-sports. As such, issues about validity and reliability had to be taken into consideration. The validity of the study was ensured by developing a questionnaire that captured the primary aim of the study. The instrument was thoroughly assessed before being used to collect data. The reliability of the data was ensured by collecting data from a wide range of sources. Information was obtained from both primary and secondary sources.

Challenges Encountered

When conducting this study, the researcher encountered some challenges which are worth discussing at this stage of the report. One of the biggest challenges is that e-sports is a less-known sporting activity among many people. The majority of those who were contacted stated that they only associate these sports with online gaming activities (gambling) or videogames meant for children and the youth. They stated that they have never known that there are competitive e-sport tournaments. As such, it meant that the researcher had to contact more people than had been initially expected to find those with relevant knowledge about the issue under investigation. Despite the challenge, the researcher was able to get 8 people who were willing to be part of the study and had a detailed understanding of this sporting activity.

COVID-19 presented another major challenge when collecting primary data. The researcher had initially planned to reach out to these participants and engage them in physical interviews, which is often the best way of collecting data on a topic that is not extensively explored. However, the coronavirus containment measures put in place by the British government meant that the researcher could not physically interact with potential respondents. This limited movement presented various challenges. It meant that the researcher could not physically trace the respondents and convince them to be part of this study. The researcher had to rely on phone calls and social media platforms such as Facebook and WhatsApp to reach out to them. Once these participants were identified, the researcher could only rely on an online survey when collecting data from them.

The researcher also faced a major challenge when collecting secondary data. Although the topic has attracted the attention of scholars over the recent past, most of these publications are not freely available on online platforms. Most of the libraries in the country have been shut down as a way of limiting physical interactions to reduce the spread of the virus. As such, the researcher had to access these materials through various online databases. The process was tedious but successful because the needed resources were finally obtained.

Ethical Considerations

It is necessary to take into consideration ethical concerns when conducting an academic research. According to Laher, Fynn, and Kramer (2019), one of the most important ethical concerns in every research project is the need to protect the identity of respondents. It is possible for one to be victimized by their superiors, colleagues, or society because of their views, which may be divergent from that of the majority of those who are in positions of power. To ensure that individuals can speak freely and without fear, it is always necessary to guarantee them anonymity. As such, the researcher ensured that all participants in this study remained anonymous. Instead of using their actual names, they were assigned codes to facilitate their identification. They were identified as Participant 1, Participant 2, Participant 3… participant 8.

It was ethically important to explain to the participants the significance of this study and the role that they were expected to play in it. They were informed that their involvement in the study was voluntary and that if they considered it necessary to withdraw at any stage of the project, they were at liberty to do so. All their questions and concerns were addressed before continuing with the study. The researcher also had to ensure that rules and regulations set by the school are effectively met. Any form of plagiarism was avoided when conducting the study. Harvard referencing style was used whenever data from other scholars were used in this report.

Analysis and Discussion

The previous chapter discussed the method used to collect and process primary data sampled from the individuals who participated in the study. In this chapter, the focus is to present findings made from the analysis. It was necessary to respond to the research questions directly based on primary data collected from these participants. The analysis was based on the individual questions. As was explained in the previous chapter, the analysis used both qualitative and quantitative methods.

The Current State of E-Sports

To define the strategic direction of e-sports, it is necessary to define the current state of e-sports. The researcher was interested in determining the level of this form of sport currently, especially its popularity. Determining the current state of the sport can help in defining the right path that stakeholders should take to ensure that it achieves the desired growth. The following was the question that was posed to the participants.

What is the current state of e-sports in global society in terms of its popularity?

The response obtained from these individuals was processed and figure 4.1 below shows the outcome of the analysis. The outcome shows that the majority of the respondents (62.5%) disagree with the argument that e-sports is popular in the global society. Two strongly disagreed with the statement while the other three stated that they disagree. One participant was not sure about the global popularity of the sport while another 2 people (25%) believe that the sport is popular. Basing the argument on the majority views, it is evident that e-sports is not yet popular. Stakeholders have not done enough to promote the sport on a global scale.

Impediments to the Growth of E-Sports

The growth of e-sports has been impeded by various factors. It explains why even after being in existence for almost half-century, it has not been included as one of the tournaments in the Olympic Games. A study by Aghey (2020) revealed that in some countries such as Japan, it is illegal because it is viewed as a form of gambling. As such, the researcher was interested in understanding specific factors that have slowed the growth of these sporting activities. The following was the question that was posed to the respondents.

What are the major impediments to the growth of e-sports in global society?

The researcher requested participants to provide specific factors that they believed have affected the growth of this sport. Various factors were identified as shown below:

Participant 1 said, “I believe the greatest challenge that e-sports face is that it is still strongly associated with gambling and other non-competitive online games.”

The response from this participant reaffirmed the claim from secondary sources that some countries still view e-gaming as an aspect of online gambling activities. They still believe it is a game of man versus machines, and that chances of winning are rarely determined by the skills of the player but by simulations of the machine (Mauleon, 2020). In countries where gambling is illegal, e-sports is rare or non-existent.

Participant 4 stated, “Misconceptions and misunderstanding of e-sports is still a major challenge. Many people do not understand how these games are played and whether an individual’s performance is determined by one’s skills or simulation of the machines.”

The participant believes that the lack of proper knowledge about the sport is the major impediment. The majority of those who participate in these games or viewers learned about them on online platforms through their personal efforts. It means that if there is no proper incentive for one to learn about the sport, then they will remain ignorant about it. Stakeholders in this field have failed to promote knowledge about the sport through various platforms, as Troupe (2020) observes. It explains why miscommunication and misinformation are still common about the game.

Participant 7 said, “The greatest impediment to the growth of e-sports is the perception that many have embraced, especially senior members of society who have the financial muscle to support its growth. They still view it as an entertainment for children and that it has nothing to do with the competitive tournament.”

Video gaming has gained massive popularity in the global society. Distinguishing between competitive e-sports and simple video games has become a major challenge according to this participant. Troupe (2020) argues that many people still believe that e-sports means the same thing as video games. As such, they do not see the rationale of including such activity in major sporting tournaments such as Olympic Games. They also do not find it reasonable to spend their resources in supporting such activities.

Respondent 8 noted, “The silent audience of e-sports may be another challenge that limits the number of sponsors willing to support the industry.”

World Cup, Super Bowl, Diamond League, and Olympic Games are sporting activities that often attract hundreds of thousands of audience physically present in the fields and hundreds of millions following through television and other major media platforms. Media companies would be physically present in such fields to cover these events (Mauleon, 2020). However, the same may not be possible in e-sports. The activity happens virtually, which means that there has to be a virtual audience. Streaming can only be done through YouTube and other related platforms, and most traditional media stations do not find enough incentives to cover them live. As such, it is more difficult to convince corporate sponsors to sponsor these tournaments. It may take some time before this perception can change.

Current Strategies Used to Promote E-Sports

Stakeholders in this industry have made an effort to ensure that they promote e-sports as they seek to transform it into a mainstream game. The researcher was interested in identifying the strategies that these stakeholders have been using and how effective they are in achieving the intended goal of creating awareness of the sport and increasing its popularity. The following are some of the strategies that these stakeholders are using, based on the response obtained from the participants:

Respondent 2 said, “Some of the stakeholders have petitioned the International Olympic Committee to include e-games in the Olympic Games. Although the committee is yet to grant their approval, the move increased the popularity of the sport.”

Some of the players and sponsors of e-sports should be included in the Olympic Games. The move was particularly given serious consideration by the committee in 2020 when the Tokyo Olympic Games had to be postponed because of the COVID-19 pandemic. Stakeholders have argued that during such a major pandemic when physical interactions of people have to be limited as much as possible, e-sports offer the best alternatives. People can still be entertained in the comfort of their homes without risking lives of the competitors (Aghey, 2020). Various other athletic games around the world have also been postponed because of the spread of the virus. E-sports would have offered a great solution.

Participant 5 said, “The creation of the League of Legends Championship Series was meant to create similarities with other major traditional tournaments such as football.”

Football is currently one of the most popular and most watched sport in the world, attracting over 4 billion spectators around the world. Designing e-games to be as similar to football tournaments as possible was meant to attract viewers who love football. The strategy has helped in making more people around the world understand e-sports.

Participant 6 said, “Players and stakeholders have embraced networking as a way of bringing them together to promote the sport irrespective of one’s location around the world.”

Stakeholders in this sector understand the significance of networking as a way of promoting the sport. They have created various platforms, depending on the nature of the game, which allows players and viewers to interact with ease. These platforms are also allowing corporate entities to promote their products during these tournaments. They have been keen on using the same business model as that which is used in traditional sports. The researcher was interested in determining how effective these strategies have been in supporting the growth of the sport.

How effective are the strategies that stakeholders in this sector use to address the challenges and foster growth?

Figure 4.2 below shows the response obtained from the participants. 3 out of the 8 participants (37.5%) felt that the strategies discussed above have been fairly successful. They argue that the number of viewers and players in e-sports has increased significantly over the past five years because of these efforts. They also believe that the current trend will be witnessed and it is possible that some of the e-sports may be included in the Olympic Games. 4 out of the 8 respondents (50%) felt that these strategies have largely failed to promote e-games globally. They cited the case of Japan where the game is still banned because it is associated with gambling. If these stakeholders have failed to convince a developed country such as Japan, which was supposed to the 2020 Olympic Games, about the legitimacy of e-sports, it is a sign that a lot still needs to be done. There is a need to ensure that these games are differentiated from online gambling activities. E-sport is yet to become attractive to major corporations that can facilitate its rapid growth.

Why do you think the current strategies have not been highly effective in promoting e-sports globally?

A slight majority of the respondents feel that the current promotional strategies in e-sports have not been as effective as it would be necessary. They have not been successful in legitimizing the sport in the international arena. The researcher was interested in determining why these strategies have not been capable of entrenching e-sport as a conventional sporting activity despite the existence of these games for more than 50 years. The following are some of the reasons that these participants provided:

Participant 3 stated, “Stakeholders in this sector have failed to use traditional platforms of communication such as television, newspapers, and radio to promote the product. They rely on new media to inform the global society about the existence of the sport.”

Social media has become a formidable platform of communication. However, it is so unregulated that even youths do not entirely trust information shared through these platforms. On the other hand, Mauleon (2020) argues that mass media is still regulated, and people tend to trust information obtained from television, radio, and newspapers. During major sporting events, the global community still turns to television to watch these games. As such, the promotion of e-sports is likely to be more successful if these traditional communication platforms are used.

Participant 8 said, “Limited financial resources at the disposal of the stakeholders in e-sports have limited their capacity to promote it effectively. It has also been difficult to have a legitimate council that can coordinate and controls activities in this sector.”

Promotional campaigns need to be adequately funded. The inability of online games leagues to attract major donors means that organizations have limited resources to promote these games. Instead of using expensive mass media platforms such as television, these organizers use niche marketing to target specific individuals they believe are interested in the sport. The problem with this strategy is that it does not expand the size of players and viewers as rapidly as would be the case if mass media is used (Fetchko, Roy, and Clow, 2019). It means that promotion relies on viral marketing, which may be slow and limited geographically. The creation of regional and international councils to regulate and promote e-sports has also been a challenge. Such councils would have made it possible to champion the growth of the sport by directly engaging major international sporting organizations.

Which ways can these challenges be effectively addressed to foster development of e-sports?

It was important to find ways of addressing the identified challenges before defining the strategic direction of e-sports. The researcher engaged the participants to get their views on the issue. They were asked to the above question was posed to the participants and the following are some of the responses obtained from them:

Participant 8 said, “It is necessary to create a legitimate council at national, regional, and international levels to coordinate activities of these sports, just as is the case in football and other major sporting activities.”

This respondent strongly believes that it is necessary to have a council that can be responsible for coordinating and controlling activities and events in e-sports. It will help in transforming this sport from the current disorganized state to a conventional activity that can easily be included in major international activities. It will also be easier to negotiate with donors to help fund the events.

Respondent 3 said, “It is necessary to create platforms that donors can use to promote their products during the tournaments to help make e-sports attractive to corporate entities.”

Major corporations that have the capacity to fund e-sporting activities do not find it attractive because they lack proper platforms for promoting their brands and products (Butolia, Phang, and Fox, 2020). Stakeholders in this sector should incentivize these entities by ensuring that they can easily reach a wide audience through e-sports. When asked whether they believe e-sporting has the potential for growth, figure 4.3 below shows their opinion based on the knowledge of the game and experience that they have.

Conclusions

The review of the literature in chapter 2 and the analysis of primary data in chapter 4 clearly demonstrates that e-sports has continued to achieve growth despite the numerous challenges that it faces. Although a section of the international community still classifies e-sports as an aspect of online gambling, stakeholders have been consistently creating awareness about the sport. An analysis of the trend of this sporting activity shows that it has a huge potential for growth. The number of players and viewers continues to increase around the world. E-sports may possibly be included in Olympic Games in the future because of the support it has received from some governments around the world. However, a lot still needs to be done to ensure that it achieves sustainable growth. In defining the strategic direction of e-sports, the following are the specific recommendations that should be considered by different governments and stakeholders involved in this sport:

• There is a need to create awareness in the international community about e-sports. Organizers of this sport and other stakeholders should explain the difference that exists between e-sports and online gambling activities;
• There is a need to create a platform through which corporate entities can advertise their products and brand. Such a strategic move will attract more corporate sponsors to this sporting activity;
• Organizers of e-sporting tournaments should spend more on mass media advertisements, especially television advertisements. These traditional platforms will help in mainstreaming these tournaments. It will also attract these mass media channels to the events;
• Stakeholders in e-sports should engage individual government authorities, such as the Japanese government and those in the Middle East and North Africa where Islam is widely practiced, and explain the concept of e-sports. The goal should be to ensure that this sporting activity becomes legally accepted in these countries by ensuring that they are not associated with online gambling.
• It is necessary to address the concern about the addiction of this sporting activity. Individuals who are addicted to these games should be offered some form of rehabilitative support through online platforms.

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Appendices: Questionnaire

Section A: Demographical Background

Kindly select your age group from the list below:

1. 18-24 Years
2. 25-34 Years
3. 35-44 Years
4. 45-50 Years
5. Over 50 Years

Kindly state your nationality?

1. British National
2. Foreign National

Kindly state your gender:

1. Male
2. Female

Section B: Educational Background and Experience

What is your highest academic qualification?

1. High school
2. Diploma
3. Degree
4. Master
5. Doctorate
6. Other (kindly specify)

Kindly select a cluster that defines you in relations to e-sports:

1. A professional player
2. An e-sports fanatic
3. An industry expert
4. An official in the Department for Digital, Culture, Media and Sport

How long have you been engaged in the position stated in question 2 above?

1. Less than e years
2. 2-4 years
3. 5-7 years
4. 8-10 years
5. Over 10 years

What is your current management position at the firm? (For the official at the Department for Digital, Culture, Media and Sport only)

1. Top managerial position
2. Middle-management position
3. Non-managerial position

Section C: Strategic Direction of E-Sports

Do you believe that e-sports are popular in the global community?

1. Strongly agree
2. Agree
3. Not sure
4. Disagree
5. Strongly disagree

What are some of the factors that have impeded the growth of e-sports? (Kindly provide a short explanation).

_________________________________________________________________________________________________________________________________________________________

Do you believe that the current strategies used by stakeholders in this sector are effective in promoting the sport?

1. Strongly agree
2. Agree
3. Not sure
4. Disagree
5. Strongly disagree

What are some of the specific weaknesses of the strategies that are currently in use? (Kindly provide a short explanation).

____________________________________________________________________________________________________________________________________________________

Do you believe e-sports has the potential for growth despite the challenges that exist?

1. Strongly agree
2. Agree
3. Not sure
4. Disagree
5. Strongly disagree

What are some of the specific challenges that individual players and organizers of these tournaments face? (Kindly list them).

1. __
2. __
3. __
4. __
5. __
6. __
7. __

How can stakeholders in this sector address the challenges that affect the growth of e-sports? (Kindly provide a short explanation).

____________________________________________________________________________________________________________________________________________________

Based on your knowledge and experience, kindly state possible similarities and major differences between e-sports and online gambling?.

Similarities:

1. __
2. __
3. __
4. __

Differences:

1. __
2. __
3. __
4. __